He plans to open the restaurant in a new strip mall being built on the east side of the Scheels addition at 41st Street and Western Avenue. The space will include patio seating.

"It's a backdrop to Scheels, which to me is the most fascinating store in Sioux Falls," Goldammer said. "It will bring families and people who go to Scheels and the Western Mall and in the area for lunch. Lunch is the main meal for Potbelly, and there are a lot of businesses in the area."

Potbelly's menu includes a variety of sandwiches, salads and soups, along with hand-dipped milkshakes and smoothies. Meats and cheeses are sliced fresh daily.

"The food is higher quality, and the build-out and atmosphere in there is more invested in the neighborhood and community," Goldammer said. "We're going to have local music. It's going to be a place where people from the community can hang out, listen to up-and-coming talented musicians, have a great meal and feel welcome."

The restaurant will hire between 25 and 30 people, and the target is to open by the end of the year.

Potbelly was founded in 1977 and has more than 280 locations.

"We have a strong base in Chicago, a strong base in Minneapolis, and Sioux Falls is not far from Minneapolis," said Mike Walters, Potbelly's senior director of domestic franchise and ops services. "There's great neighborhoods in Sioux Falls, and we believe Paul and his team will do a phenomenal job. His energy for it and who he is as a person really sold us on it."

The first store's performance will determine if there are future locations in Sioux Falls, Walters said.

"We want the single-unit person to open the first shop and grow if they want to grow," he said.

Potbelly is one of several national retailers interested in the Sioux Falls market.

Wednesday's Argus Leader and Sioux Falls Business Journal will look at new opportunities for national retail that emerged at a recent conference in Las Vegas. The annual RECon drew 33,000 people, including several real estate brokers and developers from Sioux Falls.